FYI: When it comes to where Americans put their money, few firms have the name recognition, loyalty, and track records that Fidelity Investments and Vanguard Group do. Both came to prominence in the 1970s, and have dominated America’s savings since then. Vanguard has more than $5 trillion in assets under management; Fidelity directly manages $2.5 trillion, and has nearly $7 trillion under administration (in its brokerage, retirement plans, and other accounts).
Regards,
Ted
https://www.barrons.com/articles/sizing-up-fidelity-and-vanguard-managers-1530889346
Comments
A nice sound bite, but a bit simplistic. Vanguard didn't even exist until 1975, and at that time it was a load family.
From Forbes (Ferri): "The Vanguard Index Trust was launched in early 1976 and received a tepid response. In the early days, the fund was a 'load fund,' sold exclusively through brokers. ... To add insult to injury, John Bogle, the founder of Vanguard and the brainchild behind the fund, was ridiculed by the fund industry."
From Vanguard: "As the 1970s turned into the 1980s, the news about Vanguard started to get around."
Regarding Fidelity, start with the sentiment in the Barron's piece attributed to Wiener and Lowell: “'Buy the manager, not the fund,' the astute, straight-talking duo likes to say."
Going back to the 60s, who was the manager, the original gunslinger? Gerald Tsai, with the Fidelity Capital Fund, until he left in 1965 to form his own fund (Manhattan Fund). So famous was he over his career that https://www.scmp.com/news/world/article/1503697/gerald-tsai-playboy-financier-who-seduced-america
Certainly Fidelity became even more well known in the 1970s, but it first came to prominence before Lynch.
What Wiener and Lowell (as opposed to Barron's) have to say in the article is much more sensible. No great surprises. A lot of the usual suspects, though well reasoned, and sensible: